India Nippon Electricals is joint venture between Lucas Indian Service, a wholly-owned subsidiary of Lucas-TVS and Kokusan Denki Co., Japan - a group company of Hitachi Japan. It manufactures entire range of 2/3 wheelers, digital and analog ignition products

Quarterly Performance

The topline grew by 13% to Rs 67.78 crore in Dec 2011 quarter. The OPM grew by 70 bps to 13.9% aided by lower raw material costs on account of product mix. Thus the operating profit grew by 18% to Rs 9.43 crore. The raw material costs, as % to sales net stock adjusted, fell by 70 bps to 69%. Also the other expenditure reduced by 80 bps to 8%. Only the staff cost grew by 60 bps to 10%.

The PBT grew by 19% to Rs 9.57 crore constrained by higher depreciation costs though fall in interest cost and improved other income moderated the fall. The other income grew by robust 47% to Rs 1.59 crore while the interest cost crashed by notable 40% to Rs 0.03 crore. The depreciation cost grew by notable 48% to Rs 1.42 crore on account of installation of new machines in quarter under review. Fall in effective tax rate by 120 bps lifted the net profit by 21% to Rs 7.22 crore.

Nine Month Performance

In nine month ended Dec 2011, the operating income grew by 11% to Rs 191.55 crore. Fall in OPM by 40 bps to 14.3% constrained the growth in operating profit to 8% to Rs 27.41 crore. Further hike in depreciation cost though moderated by improved other income led to limited 10% growth in PBT to Rs 28.95 crore. Nonetheless, 40 bps fall in effective tax rate lifted the net profit by 11% to Rs 21.86 crore.

The company declared first interim dividend of Rs 4 per equity share of Rs 10 each for FY 12.

The promoters' shareholding stands unchanged at 66.39% in December 2011. None of the shares' held by promoters are pledged.

The scrip is hovering at Rs 173.95 on BSE.